What would be the point of an "AI PC" if not to run models locally? I'm very much uncomfortable with sending my keystrokes (or my codebase) off to some remote server. If I can run the model locally, the privacy problems in theory vanish and I'm much more likely to use the tech.

If folks don't understand that, then yes I'd say it's a pretty big misconception and needs to be better marketed as a key feature.

And if the AI PC is just a regular PC with a cloud bot integrated, then ... what even is the point? You can already do the remote chatbot thing with a regular PC, privacy nightmares included!